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HomeMy WebLinkAbout07-13-20 City Commission Packet Materials - A4. NE URD FY20 Annual Report and FY21 WP and Budget Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Urban Renewal Program Manager SUBJECT: Northeast Urban Renewal District Fiscal Year 2021 Budget and Work Plan, and Annual Report for Fiscal Year 2020 MEETING DATE: July 13, 2020 AGENDA ITEM TYPE: Action RECOMMENDATION: Listen to the presentation, ask questions, and provide guidance to staff. BACKGROUND: On June 16, 2020, the Northeast Urban Renewal Board (NEURD) unanimously approved the attached FY 2021 Budget from which staff prepared the proposed FY 2021 Work Plan and Budget. The total value of appropriations in the NEURD budget request for FY 2021 is $233,300. The NEURB proposes a Work Plan and Budget for approval by the City Commission on an annual basis. Staff also prepared an Annual Report on significant expenditures in FY 2020. The report also highlights items of interest, or items where no action was taken during the fiscal year. FISCAL EFFECTS: The Finance Department projects revenues of $210,000 for FY 2021. Staff also estimates that the District will start the year with $270,000 cash-on-hand The FY 2021 budget includes an expenditure of all the bond proceeds and significant available cash to complete projects. The budget includes $233,300 in appropriations. UNRESOLVED ISSUES: None. 140 ATTACHMENTS: Northeast Urban Renewal District Fiscal Year 2021 Work Plan and Budget and Fiscal Year 2020 Annual Report 141 Northeast Urban Renewal Board Annual Work Plan and Budget FY2021 1 NORTHEAST URBAN RENEWAL BOARD FY2020 ANNUAL REPORT and FY2021 WORK PLAN AND BUDGET On November 28, 2005, the Bozeman City Commission finally adopted Ordinance No. 1655 which formally enacted the Northeast Urban Renewal Plan and became effective December 28, 2005. The stated mission of the plan and general goals are as follows: DISTRICT PLAN MISSION/VISION “This Plan is the City’s response to remedy the conditions of blight found in the August 2005 [Blight] Report. The Plan also addresses other issues important to the District. The Plan’s purpose is to ensure the vitality of the Northeast Urban Renewal District (NURD) the vitality of the NURD for generations to come, and to make the NURD an area in which its citizens can take exceptional pride. The Plan envisions a mixed use neighborhood that is user friendly, safe, secure and healthy. While this Plan envisions a District with diversity of housing, businesses and amenities, it intends to maintain the unique ambiance and historic character of the District”. Nine principles were developed for the plan. Each of the principles has one or more goals associated with the plan, some of which specifically relate to this work plan while others represent general objectives and directives. The Northeast Urban Renewal Board (NURB) goals are as follows: GENERAL GOALS:  Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved.  Provide public utilities to the area efficiently in ways that are not visually or physically obtrusive.  Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.  Harmonize commercial and industrial development with residential quality of life.  New structures should be designed and built keeping in mind the public values of durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in the construction of new private buildings will add strength and character to the built environment. To the degree that the private sector can be influenced by a public partner in development, the community ought to strongly encourage excellence in urban design as a basis of partnership.  Promote sustainable building practices and design within the district.  Procure new land for park and open space.  Improve landscaping in existing public spaces.  Neither the City of Bozeman nor any of its subdivisions shall use eminent domain to take private property for private use in the implementation of an urban renewal project or similar redevelopment plan.  Encourage the City to help ensure the success of the Northeast Urban Renewal Plan by giving a high priority to the Northeast District in its capital improvements plan.  Work with neighborhoods and businesses to ensure actions taken in the district are compatible with adjacent developed areas.  Work with the City to ensure actions taken outside of the District are compatible with projects inside of the District. 142 Northeast Urban Renewal Board Annual Work Plan and Budget FY2021 2 In 2010, the Northeast Urban Renewal Board began implementing plans and projects reflecting their three funding priorities: 1) Parks, Trails and Greenspace; 2) Infrastructure and 3) Neighborhood Development Plan. Northeast Urban Renewal District (NURB) FY2020 Annual Report (July 1, 2019 to June 30, 2020) East Tamarack Street $ 75,245 While the vast majority of the East Tamarack Street reconstruction was completed in Fiscal Year 2019, the final work and punch list items were done during this fiscal year, and the consulting engineer has provided the final as built drawings and plans to the City’s Engineering Department. East Peach Street $ 689 Most of the East Peach Street reconstruction was completed in Fiscal Year 2018; however, some outstanding remediation work was done this fiscal year. That work has now been completed and the as built drawings and plans submitted to the City’s Engineering Department. Pedestrian Bridge/East Aspen Street $ - This project first appeared in the FY11 work plan and budget and was one of the projects listed in the resolution for issuance of bonds to cover infrastructure construction costs. At the direction of the Board $69,750 was budgeted for this project. This funding is insufficient to complete the project. As a result, no action was taken on this project during FY 2020. Quiet Zone Feasibility Study $ - The FY 2020 Budget included $7,500 in funding for a quiet zone feasibility study. While the work is now underway, funding for this project was moved to FY 2021. The FY 2021 budget includes $11,500 for the study, which represents one quarter of its total cost of $46,000. The remaining costs are being covered by adjacent private developments. Trails Maintenance $ 698 The Northeast Urban Renewal District completed improvements to the depot trail, depot park, Aspen Street trail and North Church Avenue trail several years ago and continues to pay annual costs for maintenance of those amenities. Administrative Services $ 31,250 Costs covered under this item include staff support, administrative services and professional services. Bond Costs $ 213,900 With the issuance of bonds, which covered the costs of reconstructing East Peach Street and East Tamarack Street, expendable district revenues are severely restricted at this time. Costs covered under this item include bond repayment ($93,000) and the designated bond reserve ($120,900). Compiled 6/16/2020 143 Northeast Urban Renewal Board Annual Work Plan and Budget FY2021 3 Northeast Urban Renewal District (NURB) FY2021 Work Plan (July 1, 2020 to June 30, 2021) Front Street – Tamarack to Ida Engineering $ 30,000 East Tamarack Street has been improved to the west edge of the depot site; and North Ida Avenue, East Aspen Street and that portion of Front Street adjacent to the boulder site are to be improved by the developer of the Cottonwood & Ida project. This leaves that section of Front Street between the terminus of the East Tamarack Street and North Ida Avenue projects unimproved. It is important to get these improvements engineered so that they can be made when the opportunity arises. Pedestrian Bridge/East Aspen Street Engineering $ 30,000 This project has been included in this District’s work plan and budget since Fiscal Year 2011. It was also the fifth project listed in the bond resolution adopted in 2017. Due to limited bonding capacity, bond proceeds funded only the top two projects. With the completion of other major infrastructure projects in the district and the increased increment resulting from the 2019 reappraisal, monies will soon be available to move forward with final engineering and construction of this project, which includes sidewalk along one side of East Aspen Street between the creek and North Rouse Avenue. Since engineering for this project was last completed in FY2017 and since the floodplain map has recently been updated, it is important to conduct an engineering study of this project to determine whether the bridge has adequate length and to update the estimated construction costs. Once those cost estimates have been identified, monies for construction can be appropriately budgeted. Front Street connector trail $ 15,000 In Fiscal Year 2016, the Board donated $20,000 to the Gallatin Valley Land Trust for the Front Street connector trail, which extends from North Rouse Avenue to North Wallace Avenue. Due to a variety of issues, construction of the trail improvements has been delayed. Those issues have now been resolved, the bridge engineered to reflect the new floodplain and cost estimates updated. Also, for some of those projects previously listed as “future”, now is the future. The Gallatin Valley Land Trust has requested an additional $15,000 to help cover the increased costs. Construction is to be completed this fiscal year. Quiet Zone Feasibility Study $ 11,500 The FY 2021 budget includes $11,500 for the study, which represents one quarter of its total cost of $46,000. The remaining costs are being covered by adjacent private developments. Parking Structure $ 25,000 The Cottonwood & Ida Planned Unit Development project (aka, “Tinworks”) is currently being revised to include the Brewery site at the corner of Wallace Ave. and Tamarack St. Within the proposed project is a parking structure that will be wrapped by buildings so it is not readily visible from the adjacent streets. The developer is proposing that a portion of the spaces in that structure be made available to the public through some type of public/private partnership. These monies are to cover the costs of retaining the needed consultants to cover the costs of due diligence and possible negotiation and drafting of a revised development agreement for the project. 144 Northeast Urban Renewal Board Annual Work Plan and Budget FY2021 4 Trails Maintenance and Boulevard Tree Establishment $ 5,700 The Northeast Urban Renewal District completed improvements to the depot trail, depot park, Aspen Street trail and North Church Avenue trail several years ago and continues to pay annual costs for maintenance of those amenities. Also included is the planting of seven boulevard trees along East Tamarack Street and the weekly watering of those newly planted trees to ensure their establishment and long-term survival. Staff Support $ 3,000 The District utilizes contract staff to support district operations and administration. Payroll $ 10,100 The City’s Economic Development Department manages the Northeast Urban Renewal District in response to City Commission and the Northeast Urban Renewal Board work plans and policy guidance. 1.5 FTE are dedicated to staffing the Bozeman Urban Renewal Program as a whole, of which the NEURD contributes a proportionate share of funding. The Economic Development and Finance Departments created a new funding formula for financing the Bozeman Urban Renewal Program for FY 2021, which is based on the average revenues from the past two years of the urban renewal districts. Professional Services $ 10,000 To assist with implementation of the work plan and budget, as well as responding to new opportunities, Staff will contract for services on an as-needed basis. Bond Costs $ 213,900 Costs covered under this item include bond repayment ($93,000) and designated bond reserve ($120,900). These are static costs for the bonds that were issued in 2017 and must be budgeted through Fiscal Year 2042. Designated Reserve - Projects $ 152,500 At this time, it does not appear there will be adequate monies to fund construction of the projects for which engineering is to be done this year. If the opportunity arises to construct one of the projects for which engineering is being done at a significant cost savings, it may be moved forward and funded through this designated reserve. Northeast Urban Renewal District (NURB) Future Projects Front Street – Tamarack to Ida Construction $ 190,000 It would be financially beneficial to construct this improvement in conjunction with the improvements being made by the developer of the Cottonwood & Ida project or the City’s Front Street interceptor sewer project if that project is not constructed this fiscal year. Also, it will result in more cohesive completion of infrastructure improvement within the district and will benefit the community as a whole. Included in the project will be extension of the fiber conduit installed with the East Tamarack Street improvements. North Ida Avenue – Peach to Cottonwood Engineering $ 50,000 145 Northeast Urban Renewal Board Annual Work Plan and Budget FY2021 5 Infrastructure improvements to be made in conjunction with the Cottonwood & Ida project include North Ida Avenue between East Cottonwood Street and Front Street. Those improvements will leave the one-block segment between East Peach Street and East Cottonwood Street without improvement. It is important to undertake engineering of this block so that construction of the improvements can be completed when the opportunity arises. North Ida Avenue – Peach to Cottonwood Construction $ 280,000 While it is anticipated the off-site infrastructure improvements for the Cottonwood & Ida project will be constructed before this project is ready, this will be the last block of street improvements needed to meet the district plan’s goal of improving connectivity and pedestrian safety within the district (assuming the Front Street improvements have been completed). Currently, the use/reuse of the properties along this block are not known, so undertaking engineering and construction of these street improvements (which will include water and sewer improvements) could result in the need for immediate tear up to relocate water and sewer stubs or drive accesses. Pedestrian Bridge/East Aspen Street Construction $ 170,000 This project will provide for pedestrian connectivity through a trail extension and a non-vehicular crossing of Bozeman Creek. The project also includes sidewalk along one side of East Aspen Street between the creek and North Rouse Avenue. This will result in improvement to yet another street within the district and will tie into the new improvements to North Rouse Avenue. Quiet Zone Construction $ 50,000 The study being completed this fiscal year will identify the improvements needed to implement a quiet zone. If the study determines that a raised median on North Wallace Avenue/L Street at the approaches to the railroad tracks adequately meets the standards for a quiet zone, the costs of construction should be reasonable. It is anticipated that improvements to Griffin Drive, including upgrades at the railroad crossing, will be competed in Fiscal Year 2021; and the upgrades could potentially include those necessary for a quiet zone designation. Connector trail – Depot trail to Audubon site $ 25,000 The Audubon Society has acquired 32 acres of wetlands and sensitive lands lying east of this district and is purchasing an additional 8 acres. The subject site lies outside the boundaries of the district; however, a portion of the trail extension lies within the district. Monies may be used for extensions to a specific location outside the district. In this instance, the trail extension would provide a safe access for pedestrians moving to and through this district to the enhanced wetlands area. 146 FY21 Budget Future Projects Revenues: Estimated Beginning Balance $270,000.00 FY21 Tax Increment $210,000.00 Delinquent Increment State Shared/Entitlement Interest $1,000.00 Total Estimated Revenues $481,000.00 Expenditures: Infrastructure Front Street - Tamarack to Ida Engineering $30,000.00 Front Street - Tamarack to Ida Construction $190,000.00 North Ida Avenue - Peach to Cottonwood Engineering $50,000.00 North Ida Avenue - Peach to Cottonwood Construction $280,000.00 Pedestrian Bridge/East Aspen Street Engineering $30,000.00 Pedestrian Bridge/East Aspen Street Construction $170,000.00 Front Street connector trail $15,000.00 Quiet Zone Feasibility Study $11,500.00 Quiet Zone Construction $50,000.00 Connector trail - Depot trail to Audubon site $25,000.00 Parking Structure $25,000.00 Subtotal - Infrastructure $111,500.00 $765,000.00 Maintenance Trails/Boulevards Maintenance $5,700.00 Subtotal - Maintenance $5,700.00 Administration Staff Support $3,000.00 Payroll $10,100.00 Professional Services $10,000.00 Bond Repayment $93,000.00 Subtotal Administration $116,100.00 Reserves Designated Reserve - Bond $120,900.00 Designated Reserve - Projects $126,800.00 Subtotal Reserves $247,700.00 Total Expenditures $481,000.00 Northeast Urban Renewal District 2020-2021 Budget 147